What credit score do I need for a business loan?

Many online lenders start around 625–650, while the best rates typically require 680–720+. Banks often want 700+.

How long does it take to get a business loan?

Online lenders can fund in 1–5 business days. Banks and credit unions commonly take 2–6 weeks.

Do I need collateral?

Not always. Many online term loans are secured by a general UCC lien and a personal guarantee rather than specific collateral.

Funding guide

Business Term Loans: Rates, Terms and Requirements

A business term loan gives you a lump sum that you repay with interest in fixed installments over a set term, typically 1–5 years from online lenders and up to 10 years from banks. Term loans usually cost less than cash advances but require stronger credit, at least 1–2 years in business and solid revenue.

Last updated October 23, 2026

What is a business term loan?

A term loan is the classic form of business borrowing: a fixed principal amount, an interest rate, and a repayment schedule. Payments are usually monthly, though some online lenders collect weekly.

Lenders evaluate personal and business credit, time in business, annual revenue, cash flow and debt service coverage. Larger loans may require a personal guarantee and a UCC lien on business assets.

Business Term Loans: typical ranges

Amount: $25k – $2M
Term: 1 – 10 years
Cost: 8% – 45% APR
Speed: 1 day – 4 weeks
Credit: 650 – 680+

Source: industry estimates compiled by BusinessFundingQuote.com; actual terms are set by each provider.

Requirements

2+ years in business (some 1 year)
$100k+ annual revenue
650–680+ personal credit
Tax returns and financial statements for larger amounts
Positive cash flow

Pros and cons

Pros

Lower cost than MCAs
Predictable fixed payments
Builds business credit
Longer terms available

Cons

Stricter credit and TIB requirements
Slower than MCAs
Personal guarantee usually required
Possible prepayment penalties

Who it's best for

Established businesses with good credit
Planned investments like expansion or hiring
Refinancing expensive short-term debt

Business Term Loans vs alternatives

Comparison of business funding options (industry estimates)
Option	Amount	Term	Typical cost	Speed	Credit
Business Term Loans	$25k – $2M	1 – 10 years	8% – 45% APR	1 day – 4 weeks	650 – 680+
SBA Loans	$50k – $5M	10 – 25 years	Prime + spread (capped)	30 – 90 days	680+
Business Line of Credit	$10k – $500k	Revolving; draws 6–24 mo	10% – 60% APR	1 – 7 days	600 – 680+
Working Capital Loans	$5k – $1M	3 – 24 months	Varies by product	1 – 5 days	550 – 680+
Equipment Financing	$5k – $5M	2 – 7 years	6% – 30% APR	1 – 10 days	600+

Run the numbers with our Business Loan Calculator.

Frequently asked questions

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Written by

BusinessFundingQuote Editorial Team

Small business finance writers

Reviewed by

Funding Review Desk

Reviewed for accuracy against current market practices

Rates and ranges on this page are typical market estimates for educational purposes, not offers. How we make money.